Unemployment benefits in Norway 2016

Citizens of European Economic Area who find themselves employed in Norway have the same rights to unemployment benefits as citizens of Norway. This article presents types of the benefits, that are granted to a Norwegian worker after termination of employment or reduced working hours. Institution responsible for administering unemployment benefits described below is Arbeids- og velferdsetaten (NAV) – the Norwegian Labour and Welfare Administration.

Termination of employment
Unemployment benefit for job loss (dagpenger ved arbeidsløshet) may be granted after conclusion of employment with a Norwegian employer or reduction of working hours by at least 50 percent. The benefit equals 62,4 percent of income earned before job loss or reduction of working hours. Unemployment benefit is calculated on basis of income received in Norway in 2015 or the average of income received during last three years (that is 2013, 2014 and 2015). Apart from job payment, some insurance benefits are included in the basis. Those are: sickness benefit, attendance allowance, training allowance, parental benefit, pregnancy benefit and previously received unemployment benefit. The basis on which unemployment is calculated may be maximally 6 G which is 540 408 NOK from 1st May 2015 to 1st May 2016 (G is the National Insurance basic amount).

To acquire the right to unemployment benefits, one needs to have earned sufficient income. According to valid law the minimum income received in Norway during 2015 had to reach 135 102 NOK or 270 204 NOK during the previous three calendar years (that is 2013, 2014 and 2015). The minimum income consists of income from paid work and some insurance benefits: parental benefits, pregnancy benefits and sickness benefits granted because of a risk to pregnancy.

According to The EEA Agreement there is a possibility to add income earned in other EEA country to the unemployment benefit basis. To accomplish that stating PD U1 form is essential. The form is used to confirm periods of employment and insurance in other EEA country.

Everyone who applies for unemployment benefit must be a genuine job seeker. Registration as a job seeker in NAV's network is required. During the registration unemployed submits his or her Curriculum Vitae. One applying for unemployment benefit needs to stay in Norway and have a Norwegian registration of residence during both applying for and being paid the unemployment benefit.

For every benefit-taker there is a certain waiting time, during which the unemployment benefit is not paid. When losing a job or having working hours reduced, the waiting time without the benefit, is 3 days. Those who decide to quit have to wait 12 weeks before the first payment of unemployment benefit. During the extended waiting period every requirement for being eligible for unemployment benefit has to be met.

Transferring unemployment benefit
The Norwegian insurance scheme allows receiving Norwegian unemployment benefit while staying in other EEA country. Transferring unemployment benefit may be granted to those who want to look for work outside Norway while receiving the unemployment benefit. Workers that have been laid-off do not have the right to export the benefit.

The maximal time of the transfer is 3 months. One needs to apply for PD U2 form, which serves as the authorization to export the unemployment benefits. Everyone who applies for transferring unemployment benefits must have been eligible for unemployment benefit at least during 4 of 12 weeks before leaving Norway. That means being unemployed and registered as a job seeker. During the export the benefit-taker has to submit his or hers employment status form every 14 days. Submitting the form will be explained in the last part of this article.

Lay-off
Workers may be also eligible for unemployment benefit after being laid off, that means being temporarily exempt from obligation to come to work while the employer is exempt from obligation to pay worker's wages. The terms that need to be met to have the right for unemployment benefit are similar to the criteria needed when applying for the benefit after job loss. This means that a laid off worker may get unemployment benefit if he or she sends a proper form, registers as a job seeker, submits an employment status form every 14 days, has earned a sufficient income during previous years, has a Norwegian registration of residence and stays in Norway. Rotation workers and cross-border workers don't need to have a Norwegian registration of residence and don't have to live continuingly in Norway. Additionally the lay-off must be caused by lack of work in the company or circumstances beyond employer's control.

Unemployment benefit while being laid off (dagpenger ved permittering) equal 62,4 percent of lately received gross income. The benefit may be granted for 30 weeks over 18-month period. This constraint is in force when the benefit-taker is constantly employed in the same company. If the benefit-taker has been receiving unemployment benefit for 30 weeks and finds new job and has a new employer, he or she may be eligible for another lay-off period of 30 weeks over 18 months.

Child supplement
Every benefit-taker who is a parent of children under the age of 18 will be paid a child supplement (barnetillegg). Current amount of the supplement is 17 NOK per day per child. The supplement is paid as long as the unemployment benefit is paid or until the child turns 18 years of age.

The duties of a benefit-taker
Everyone receiving unemployment benefit is obliged to submit an employment status form every 14 days. Thanks to employment status forms NAV receives information about benefit-taker's situation regularly. The administration decides to continue or to stop the payment of unemployment benefit on the basis of the data submitted in the form.

It is possible to work or study during the period of receiving unemployment benefit. However there are some limitations that need to be taken into account. While combining work and getting unemployment benefit the part-time job cannot last more than 50 percent of regular working hours. Every studies that the benefit-taker wants to begin have to be accepted by NAV. If a benefit-taker starts education without the approval of NAV, the payment of unemployment benefit will be stopped.

In order to be eligible for unemployment benefit every benefit-taker is obliged to live in Norway while claiming the benefit. Unemployment benefit is not paid for days during which the benefit-taker doesn't stay in Norway. Traveling outside Norway is possible only during the weekends. Any long stay outside Norway results in losing right to unemployment benefit. The requirement of staying in Norway doesn't apply to rotation workers and cross-border workers who have been laid off.

Author: Aleksandra Leńczuk, Company Multinor
Source: www.multinor.no

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